Transcript Wi-Fi/Wi-MAX: Fast, Low Cost, Simple Today

Wi-Fi/Wi-MAX: Fast, Low Cost, Simple Today
Ron Sege, President and CEO, Tropos Networks
October, 2004
Wi-Fi/WiMAX—”The Ethernet of Radio”
10000
10-Gigabit Ethernet
Frequency
5 years out Wi-Fi is shipping
3M units/month
Gigabit Ethernet
1000
100
Fast Ethernet
10
Ethernet
1992
1993
1994
1995
1996
1997
1998
1999
2000
Ethernet Performance Over Time
10 years out Ethernet had
shipped 1M units total
© 2004 Tropos networks, Inc.
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2001
Wi-Fi Client Devices (millions)
0
Wi-Fi Client Shipments
100
2004: 1,000+ devices
90
WiFi certified
80
2003: Wireless integrated onto
PC motherboard; Wireless
70
device proliferation: laptops,
60
PDAs, video cameras, etc.
50
2002: Wireless NIC: <$60
40
2001: HP, Dell, IBM,
Toshiba offer built-in
30
wireless;
Wireless NIC: $100
20 1999: IEEE 802.11b (“WiFi”) standard adopted;
10
Wireless NIC: $200
0
1999
2000
2001
2002
2003*
2004*
2005*
Metro-Scale Open-Standard Radio in Action
Wired IP
Network
Backhaul
WiMAX
Mesh Cell
Gateways
Wi-Fi (Unlicensed)
WiMAX (Licensed)
Mesh Cell
Nodes
Clients
Multi-square mile
© 2004 Tropos networks, Inc.
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Fast
Wi-Fi/WiMAX: Real broadband
• 802.11b: 11 Mbps
• 802.11g: 54 Mbps
• 802.16d 70 Mbps
• 802.11n: 100-200 Mbps
802.11e:
802.11r:
802.11s:
802.16e:
QoS
Roaming
Meshing
Mobility
Average Throughput (Mbs)
•
•
•
•
Circa
Circa
Circa
Circa
1999
2004
2005
2006
50
Tropos
Architectural
Advances
10
Tropos + Gains
in Open
Standard Radio
5
Today’s
Cellular
Architecture
1
0.5
2004
© 2004 Tropos networks, Inc.
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2005
2006
2007
2008
Low Cost
Wi-Fi/WiMAX: Open-Standard Price/Cost curve
• Worldwide standard, 75M connections shipped since 1999
• (List) Price/Mbps capacity:
–
–
–
–
1999:
2001:
2004:
2006:
$
$
$
$
202
11
1
0.40
• Metro-scale CAPEX/Mbps/home
passed, fully-installed
Per Subscriber Summary
ARPU
ACPU
Incremental Cost / Sub
EBITDA / Sub
$24.41
$5.74
$4.25
$18.67
Total CapEx / Potential Sub Passed
$30.01
– 2004: $ 1
– 2006: $ 0.30
• No handset subsidy, no truck roll, no
license fee
© 2004 Tropos networks, Inc.
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Year 5
Greater Denver
Metro Wi-Fi Model
Source: Tropos
Simple
250,000
200,000
station
s
Wi-Fi/WiMAX: Everywhere for
everybody
• Laptops, PDAs, cell phones, music
players, cameras, televisions…
• Ample, open and increasing amount
of ease-of-use software
• Any native IP service, including
Virtual Private Networks, voice,
video
• Fixed and mobile
Hotspots v Cellular Base Stations
150,000
WiFi Hotspots
Cellular base stations
100,000
50,000
0
2002
2003
2004
2005
2006
2007
Source: Bear Sterns, TMNG
Hotspot Subscribers
10,000,000
9,000,000
8,000,000
7,000,000
Supply of Wi-Fi devices
is creating its own service
demand
6,000,000
pwlan subs
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2002
2003
2004
subs
© 2004 Tropos networks, Inc.
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Wi-Fi Parking Meter
2005
2006
2007
Source: Bear Sterns, TMNG
Today: Five of 100+ Metro Examples
• Chaska, MN residential
– 20% penetration 1 month
– Installed by City Manager
• Corpus Christi multi-use
– Including AMR
Pilot Area
Approx 18.5
Sq Miles
(16 per mile)
• Philadelphia multi-use
– Successful proof-of-concept
– Competition + public safety +
digital divide + economic
development
• Oklahoma City public safety
– 400 sq mi
• Urban east-coast city VoWi-Fi
– Prepaid city-wide mobility
© 2004 Tropos networks, Inc.
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AMR Pilot
Area 2
AMR Pilot
Area 1
Killer Combo:
+
<$.02/minute*
+
<$100 unsubsidized
<$6/sub/mo
It just doesn’t get any better than this!
*SkypeOut Rate to POTS phone
© 2004 Tropos networks, Inc.
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Wi-Fi/Wi-MAX:
Fast, Low Cost, Simple, Today.
So, Why Not?
© 2004 Tropos networks, Inc.
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